Votes

Memo

TITLE OF BILL: An act to amend the real property tax law, in relation to allowing certain special assessing units other than cities to adjust their current base proportions

PURPOSE: To allow special assessing units other than cities in the county of Nassau to adjust their current base proportions.

SUMMARY OF PROVISIONS: Section 1. Amends section 1803-a of the Real Property Tax Law by adding a new paragraph w.

Section 2. Effective date.

JUSTIFICATION: Article 18 and 19 of the Real property Tax Law provide that in "special" and "approved" assessing units, class tax rates must be established in accordance with a strict statutory formula. One of the elements of-the formula is that the current base proportion of any class may not exceed the adjusted base proportion for that class from the prior year by-more than 5%. To avoid hardship to homeowners, the Legislature has overridden this 5 cap on an annual basis for a number of jurisdictions, including Nassau County (Article 18) and the approved assessing units in Nassau (Article 19), where a 1% cap has been repeatedly set in recent years by special legislation. until these annual bills are enacted, however, there is a budgetary uncertainty in these jurisdictions each year. Another concern is that circumstances vary from jurisdiction to jurisdiction, and the cap may not work equally well for all of them. This bill gives special and approved assessing units in Nassau County the authority to tailor their "cap" to local conditions each year, thereby removing the annual uncertainty and freeing them to do what is best for the local property taxpayers in their neighborhood.

LEGISLATIVE HISTORY: New Bill.

FISCAL IMPLICATIONS: None to the State.

EFFECTIVE DATE: This act shall take effect immediately and shall apply to the levy of taxes based on the 2011 assessment roll in a special assessing unit.

Text

STATE OF NEW YORK
________________________________________________________________________
5002
2011-2012 Regular Sessions
IN SENATE
May 2, 2011
___________

Introduced by Sen. MARTINS -- read twice and ordered printed, and when
printed to be committed to the Committee on Local Government
AN ACT to amend the real property tax law, in relation to allowing
certain special assessing units other than cities to adjust their
current base proportions
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 1 of section 1803-a of the real property tax
law is amended by adding a new paragraph (w) to read as follows:
(W) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (C) OF THIS SUBDIVI-
SION TO THE CONTRARY, IN A SPECIAL ASSESSING UNIT THAT IS NOT A CITY AND
FOR CURRENT BASE PROPORTIONS TO BE DETERMINED BY TAXES BASED ON SUCH
SPECIAL ASSESSING UNIT'S TWO THOUSAND ELEVEN ASSESSMENT ROLL, THE
CURRENT BASE PROPORTION OF ANY CLASS SHALL NOT EXCEED THE ADJUSTED BASE
PROPORTION OR ADJUSTED PROPORTION, WHICHEVER IS APPROPRIATE, OF THE
IMMEDIATELY PRECEDING YEAR BY MORE THAN ONE PERCENT. WHERE THE COMPUTA-
TION PERFORMED PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION WOULD
OTHERWISE PRODUCE SUCH RESULT, THE CURRENT BASE PROPORTION OF SUCH CLASS
OR CLASSES SHALL BE LIMITED TO SUCH ONE PERCENT INCREASE AND THE LEGIS-
LATIVE BODY OF SUCH SPECIAL ASSESSING UNIT SHALL ALTER THE CURRENT BASE
PROPORTION OF ANY OR ALL REMAINING CLASSES SO THAT THE SUM OF THE
CURRENT BASE PROPORTIONS EQUALS ONE.
S 2. This act shall take effect immediately and shall apply to the
levy of taxes based on the 2011 assessment roll in an approved assessing
unit.

EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10186-01-1

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